Lifemark Corporation Reports First Quarter Results
Released_By: USANews Press Release Network
Date: 10/7/99
Time: 12:04:00 AM
For_Immediate_Release
PHOENIX, Oct. 6 - Lifemark Corporation (Nasdaq: LMRK) today announced results
for the first quarter of fiscal year 2000, which ended August 31, 1999. The
company reported revenues of $23,609,000, compared to $19,244,000 in the first
quarter of fiscal year 1999, representing a 23 percent increase. Net income was
$214,000, or $0.04 per share compared to $422,000 or $.08 per share reported
during the same period last year. The results for the quarter reflect a
continued increase in member enrollments, which were offset by expenses
associated with the departure of the company's former CEO, Michael Hernandez,
and non-recurring costs related to completion of the process improvement study
that began last year. Commenting on the quarter's results, Rhonda E. Brede,
President and Chief Operating Officer stated, "Our results reflect the costs
associated with upgrading our systems to further improve operating efficiencies.
As we announced last quarter, we anticipated that the implementation of these
measures would cause a reduction in earnings in the near term, but we are
confident that the implementation of a higher quality, more cost-efficient
business model will significantly enhance the outlook for Lifemark. Going
forward, we believe these measures will help increase enrollment in the health
plans that we manage and own, and strategically position Lifemark to access and
pursue new market opportunities." During the quarter, the company changed its
name to Lifemark Corporation to better communicate the nature of the company's
core business. Since 1989, when Lifemark pioneered its model of care management,
the company has sought to improve the well being of its members while minimizing
costs. Today, the company manages the care of more than 200,000 members
nationally representing over $400 million in annual healthcare expenses. In
addition, over 2.5 million individuals have access to the company's Eldercare
Services Center.
Lifemark Corporation, based in Phoenix, Arizona, provides managed health care
programs for chronically ill people, including frail, elderly, vulnerable and
disabled populations. The Company's proactive approach provides innovative and
effective solutions to manage both the financing and delivery of comprehensive
health care for these populations, which yields high quality care and superior
patient satisfaction. The company currently has health care service operations
in Arizona, California, Hawaii, Indiana, Michigan, New Mexico and Texas.
The Company's releases may contain forward-looking statements, including
statements regarding expected future results of operations, which are subject to
certain risks and uncertainties. The company's SEC filings contain additional
discussions about those facts, which could cause actual results to differ
materially from management's expectations.
Editors Note: Additional information on the Company is available on Lifemark
Corporations' Website at
http://www.lifemarkcorp.com.
Consolidated Statements of Income (Amounts in thousands, except per share
amounts) (Unaudited)
Three Months Ended August 31, August 31, 1999 1998
Revenues $23,609 $19,244 Direct cost of operations 17,850 14,300 Marketing,
sales and administrative 5,535 4,387 Operating income 224 557 Interest income,
net 155 163 Income before income taxes 379 720 Provision for income taxes 165
298 Net income $214 $422
Net Income per common share -- basic $0.04 $0.09
Weighted average common shares outstanding 4,808 4,694
Net income per share -- assuming dilution $0.04 $0.08
Weighted average common and common equivalent shares outstanding 4,865 6,044
Consolidated Balance Sheets (amounts in thousands)
August 31, 1999 May 31, 1999 (unaudited) ASSETS Current Assets: Cash and cash
equivalents, including restricted cash of $10,254 and $9,713 $13,862 $13,792
Short-term investments --- 501 Accounts and notes receivable & unbilled
services, net 5,747 5,886 Deferred income taxes, net 1,216 1,213 Prepaid
expenses and other current assets 619 882 Total current assets 21,444 22,274
Related party notes receivable 565 568 Property and equipment, net 4,519
4,205 Performance bonds 4,423 4,203 Goodwill, net 2,370 2,462 Other assets 1,004
1,108 Total assets $34,325 $34,820
LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable
$480 $659 Accrued medical claims 8,461 8,662 Risk pool payable 667 691 Related
party risk pool payable 175 152 Accrued compensation 1,971 2,464 Other accrued
expenses 1,607 1,750 Current portion of related party interest payable 788 710
Current portion of long-term debt 37 23 Total current liabilities 14,186 15,111
Long term debt 445 211 Related party long-term debt 3,453 3,440 Deferred
income taxes 124 155 Total liabilities 18,208 18,917
Commitments and contingencies -- --
Stockholders' Equity: Common stock, $0.01 par value Authorized - 10,000
shares Issued and outstanding - 4,808 shares 48 48 Capital in excess of par
value 16,148 16,148 Accumulated deficit (79) (293) Total stockholders' equity
16,117 15,903 $34,325 $34,820
SOURCE Lifemark Corporation Web Site:
http://www.lifemarkcorp.com
